As per section 185 of the companies act Company (both Public and private company) can't give loan  or provide guarantee to director or the company in which director are interested or  to the person who is acting  according to the directions and instructions of board of directors of  lending company, means Holding company can't give loan to a Subsidiary company, because of common directors. To remove this difficulties MCA notify section 186, similar to  section 372A of the companies act, 1956.

Posted 3 years, 5 months ago by Heena Golani

Can you please explain the provisions of section 186. I am not a CA, neither a CS. Bit difficult to understand for me.

The title says how 186 is related to 185. Can you please explain how its related?

Posted 3 years, 5 months ago by Rahul Rai

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